HomeFeatures & AnalysisLargo Resources to lift Brazil mine's NPV with Whittle

Largo Resources to lift Brazil mine’s NPV with Whittle

Mining optimisation expert Whittle Consulting (WCL) will apply its Enterprise Optimisation solution with TSX-V listed Largo Resources on its Maracas Menchen vanadium operation in Bahia, Brazil.

Enterprise Optimisation analyses the full business chain simultaneously over life of mine with the focus being on NPV improvement.

WCL is able to improve the NPV by collaborating with the client’s team, using proprietary ‘Prober’ software and applying recognised technical and economic maxims such as Ken Lane’s variable cut-off grade, theory of constraints and activity based costing.

The results are greater capital discipline, improved margins and accelerated cash flows, often doubling cash in the first five years after application.  Enterprise Optimisation has been used on over 100 projects globally and has generally improved asset NPV between 5% and 35% and significantly more.

The Maracas mine uses open pit mining techniques from a central open pit deposit, with future satellite pits also planned along a 7 km trend.

These feed a process plant consisting of crushing, grinding, magnetic separation, concentrate roasting and leaching, filtration and precipitation circuits to produce vanadium pentoxide (V2O5) flake and by- product of iron ore concentrate at a plant feed rate of 1.4 Mtpa. This entire process will be scheduled and modelled within Prober to develop monthly, quarterly and annual LOM schedules.

The mine has a number of potential value added opportunities which have not been identified using conventional silo based optimisation techniques.

Whittle expects that through the application of best practices and knowledge transfer to the Maracas Menchen team, that these opportunities will be exploited and provide a significant improvement in both cash flow and overall NPV of their operation.

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